| Something is very clearly not right with the economy now. It is interesting that you also work with Government departments Shaun as without doubt they have cut spending this year. It started with the announcement of the election which indicated that the election was to be closer fought that it was in the end. But the worrying thing is that since the election Government departments have not got back to the spending that they were this time last year.
The IT industry (hardware manufacturers) has been a very tough place to be since 2000, a year ago things looked to be getting better but when the election was announced and with the likes of HP stuffing the channel through with product that was not selling (as the manufacturer pre order) we saw a lot of out of date product being sold at less than cost over the last couple of months. Now with that stock sold through we are seeing margin recovery as prices rise. |